High-Yield Savings Accounts Reach 4% APY as National Average Holds at 0.39%

The most competitive high-yield savings accounts are paying up to 4% annual percentage yield (APY) as of January 25, 2026, markedly outpacing the national average of 0.39% reported by the Federal Deposit Insurance Corporation (FDIC). Current top-tier rates are being offered by SoFi, Valley Bank Direct and Barclays, giving savers an opportunity to earn substantially more interest than they would receive from a standard account.

National average versus leading rates

According to the FDIC’s latest data, the typical savings account yields 0.39% APY. Although that figure is low compared with other financial products, it represents a notable increase from the 0.06% average recorded three years ago. Even so, the highest rates available today are more than ten times the national benchmark, illustrating a wide gap between conventional and high-yield deposit options.

The current 4% APY ceiling is available through three institutions:

• SoFi Bank, N.A.
• Valley Bank Direct
• Barclays

Each of these banks provides online access and daily interest compounding, allowing balances to grow faster than accounts that compound monthly or quarterly. Because APY factors in the frequency of compounding, published yields enable direct comparison among institutions, regardless of their individual compounding schedules.

How APY affects earnings

APY represents the total amount of interest an account will earn over a 12-month period, inclusive of compound growth. The following examples illustrate how rate differences influence returns:

Example 1: Average rate. A deposit of $1,000 placed in an account earning the national average of 0.39% APY with daily compounding would grow to $1,003.91 after one year. The $3.91 gain reflects both the base rate and the effect of daily compounding.

Example 2: High-yield rate. The same $1,000 deposited in a high-yield account paying 4% APY would end the year at $1,040.81. The $40.81 increase demonstrates the impact of a higher yield in combination with daily compounding.

Example 3: Larger balance. A $10,000 deposit earning 4% APY would grow to $10,408.08 in 12 months, resulting in $408.08 of interest. The proportional growth underscores how larger principal amounts magnify the benefits of elevated rates.

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SoFi promotional details

SoFi Bank currently advertises an APY of up to 4.00%. The rate combines the institution’s base yield of 3.30% APY (effective December 23, 2025) with a temporary 0.70% APY boost available for up to six months. Customers must open a new SoFi Checking & Savings account and enroll in the SoFi Plus program by January 31, 2026, to qualify. SoFi notes that its rates are variable and may change at any time. All deposits are insured through the FDIC, as the bank is a member of the agency.

Daily compounding explained

Savings account interest typically compounds daily, meaning interest is calculated on the previous day’s closing balance and added to the account. This process repeats every day, and the accumulated interest is paid out according to each bank’s schedule, often monthly. The more frequently interest compounds, the faster a balance grows, making daily compounding advantageous in comparison with less frequent intervals.

Why rates vary across banks

Banks and credit unions set their own savings rates based on factors such as funding needs, operating costs and competitive strategy. Online institutions frequently offer higher yields because they operate without the expenses associated with extensive branch networks. As a result, online-only banks can pass savings on to customers in the form of elevated APYs. Brick-and-mortar banks, which maintain physical locations, generally offer lower rates but may provide additional in-person services.

Importance of FDIC insurance

Before selecting an account, consumers may wish to confirm that the issuing bank participates in federal deposit insurance. The FDIC insures deposits up to $250,000 per depositor, per institution and per ownership category. Additional information about coverage limits and requirements can be found on the FDIC’s official website.

Key facts at a glance

• National average savings rate: 0.39% APY.
• Highest rate from featured partners: 4% APY.
• Institutions offering 4% APY: SoFi, Valley Bank Direct, Barclays.
• Interest generally compounds daily on high-yield accounts.
• Rates remain variable and can change without prior notice.

Savers seeking to maximize earnings may compare APYs, compounding frequencies and account requirements across multiple institutions. The difference between the national average and top rates demonstrates the potential benefit of pursuing high-yield options where available.

Crédito da imagem: Getty Images